HELEN LIDDELL MEETS VICTIMS OF MIS-SELLING

Two victims of personal pensions mis-selling today met with the Economic Secretary, Helen Liddell to discuss their cases.

Stella Gardner, a home care officer from Poole,Dorset and Christine Culbert, a school administrative assistant from London told the minister about their experiences of trying to get redress from the pension companies.

Following the meeting, Mrs Liddell said:

"This is the human face of pensions mis-selling. The statistics tell a grim tale but cannot give a true picture of just how much distress is caused. However,at last, it is heartening to meet people who have taken their complaints forward and - finally - received the redress they deserve. Their experiences illustrate the need for all firms involved in mis-selling to start looking after their customers. Delays and buck passing must stop.

"The very best customer care must be deployed if the industry is to regain the trust of its customers."

The Minister urged people to check their pension provisions and if they believe they have a complaint, to pursue it. With compensation payments averaging 7,500 Pounds being made into people's pension funds, it could make a real difference to their pension entitlement.

She said:

"We all get a lot of junk mail and it is very easy for questionnaires from pension firms on the review to get overlooked. If your company is requesting information please reply.

"Don't be put off: where it is due, redress will be made."

When she met 17 firms in September, Mrs Liddell asked each firm to provide a statement setting out the policy they had adopted and the practical plans they had made to complete their reviews and better the targets set for them by the Personal Investment Authority (PIA). These plans will be published later this week. The 17 firms have also provided the first monthly update on the progress they have achieved.

These figures, which cover the period to the end of September, were published alongside information provided by the 24 firms with the most cases to review.

The September figures show that:

5 of the 41 firms have resolved over half their cases;
25 firms have resolved between 25-50 per cent of cases; and
11 firms have resolved under 25 per cent.

On the figures, the Minister said:

"I want the public to have information to help people judge for themselves just how committed each firm is to achieving real progress."

"The latest figures illustrate in stark terms how important it is that firms pull out all the stops. Clearly it is possible to make progress, though some firms are still lagging far behind."

NOTES TO EDITORS

1. In May 1997 the Securities and Investments Board (SIB) and the Personal Investment Authority (PIA) launched a national advertising campaign to raise awareness of the pensions review among those potentially affected. As part of their on-going campaign the SIB and PIA have published a number of case histories to illustrate how individuals who were mis-sold a personal pension have benefited from having their pension reviewed. A copy of the case studies is attached.

2. Information on the review in the form of a SIB factsheet can be obtained from freephone 0800 003 007.

3. PIA's Pension Helpline on 0171 417 7001 is available for people who need advice.

4. Mrs Liddell met with the 24 firms with most cases to review on 14 May. Beginning on 9 July, the Treasury has been publishing information on a monthly basis on how fast they are dealing with cases. The Minister met with representatives of a further 17 firms on 18 September. Figures for end September for all 41 firms are in the table attached.

5. So far, the regulators have imposed a number of fines for offences connected with personal pensions cases. Recent fines include:

August 1997 The M&E Network was fined 100,000 Pounds by PIA and reprimanded for its failure to take all reasonable steps to carry out the review of its past pensions business in accordance with the standards prescribed by PIA. In particular, the firm had delayed the mailing of pensions review questionnaires to its clients, which is an essential first step in the pensions review process. The firm was also ordered to pay costs of 25,000 Pounds
September 1997 DBS Financial Management Ltd was fined 425,000 Pounds and reprimanded by PIA after it admitted failing to take all reasonable steps to carry out its review of past pension business and to monitor the review of pensions business transacted by its representatives prior to joining DBS. The firm was also required to pay costs of 19,450 Pounds.
September 1997 Friends Provident was fined 450,000 Pounds and reprimanded by PIA for failing to take all reasonable steps to carry out its review of past pensions business or to monitor the review by other businesses for which it has responsibility. The firm was ordered to pay PIA's costs of 20,000 Pounds.
September 1997 Midland Bank was fined 150,000 Pounds by the Investment Management Regulatory Organisation (IMRO) for failing to provide customers with all the necessary information to help them make a balanced and informed decision about whether to carry out a pension transfer. The firm was ordered to pay IMRO's investigation costs of 70,708 Pounds and a contribution to the disciplinary costs.

	A	B	C	D	E	F	G	H
Under 25% of cases resolved
DBS	352	0	0	0	5	0	0	0
Gan	9,936	138	432	184	248	180	2	5
Lincoln National	12,667	916	1,126	486	640	212	2	13
Brittanic	14,780	42	2,892	1,376	1,516	1,091	7	17
Sun Life of Canada	25,806	2,937	1,938	246	1,692	1,278	5	17
Countrywide	485	64	35	20	3	1	0	18
Canada Life	5,404	97	1095	271	824	582	11	18
Windsor Life	8,262	1,264	392	26	366	259	3	19
Friends Provident	6,433	705	848	182	666	514	8	2
London and Manchester	7,693	450	1,959	274	1,685	1,041	14	23
Godwins	1,358	8	344	215	129	100	7	24
25-50% of cases resolved
Financial Options	243	62	1	0	1	0	0	26
United Assurance	12,264	607	3,130	1,026	2,104	1,505	12	26
Burns Anderson	384	32	76	58	21	14	4	27
CIS	43,339	1,835	11,715	8,744	2,971	1,403	3	28
Royal London	10,211	862	2,555	937	1,618	1,033	10	28
IFA Network	520	82	65	62	3	3	1	28
Royal & Sun Alliance	15,182	1,412	3,720	552	3,168	2,369	16	29
Pearl	40,233	1,644	17,716	3,667	14,049	6,360	16	29
Allied Dunbar	17,128	2,133	3,644	1,717	1,927	1,341	8	30
Hill Samuel	5,813	560	1595	412	1183	815	14	31
Albany Life	2,833	377	1174	81	1093	417	15	31
Colonial	7,856	1,631	1,569	185	1,384	812	10	33
Sedgwick	9,821	2,328	1,292	553	740	459	5	34
Abbey Life	17,044	3,368	3,109	681	2,428	1,806	11	34
Standard Life	6,410	260	2,098	865	1,233	1,081	17	34
Prudential	69,198	11,155	22,546	2,241	20,305	11,604	17	36
Guardian	8,619	618	3,288	602	2,686	1,989	23	37
NatWest	13,707	3,204	2,764	705	2,059	1,370	10	39
Commercial Union	7,132	727	2384	655	1729	1369	19	39
Midland	4,711	327	1,928	335	1,593	1,195	25	39
Wesleyan	4,110	190	1822	498	1235	975	24	40
Berkeley Independent	68	27	0	0	1	1	1	41
Lloyd's TSB	47,477	7,138	13,608	3,813	9,795	8,890	19	42
Hogg Robinson	1,743	541	354	87	267	109	6	42
Norwich Union	6,987	1,955	1,622	513	1,109	885	13	48
Over 50% of cases resolved
AXA Equity and Law	3,825	635	1,667	663	1,004	866	23	57
Legal & General	34,576	13,034	8,935	1,214	7,721	5,316	15	57
M&E Network	266	146	32	10	22	13	5	64
Barclays	16,741	5,625	6,331	1,661	4,650	3,657	22	65
Equitable Life	11,038	5,545	2,059	1,036	1,023	724	7	66

A: cases identified as requiring review
B: of A, cases where investor was informed that information gained during assessment excluded cases from review
C: number of assessments completed
D: cases where the investor has been informed that no redress is due.
E: cases where redress has been offered
F: cases where redress has been accepted.
G: cases where redress has been accepted as a percentage of cases identified for review ((F/A)x100).
H: cases completed, including exclusions, as a percentage of cases identified for review (((B+D+F)/A)x100).

Press Notices 1997 July to December index